The second subgroup (subgroup leader: Professor Toshihiro Ihori, University of Tokyo) of the Study Group on the Financial System (headed by Professor Keimei Kaizuka, Chuo University) established by JBA compiled the report titled, "Ideal Taxation of Future Financial Income in Japan" (Proposal), based on their fiscal 2006 studies, and published it on March 1.
The main points of the proposal are as follows.
| - | "Financial income" should include dividends of and profits/losses from the sale of stocks, dividends of and profits/losses from the sale of investment trusts and account interest. |
| - | These should be taxed separately from other income with a flat tax rate. |
| - | Aggregate computation of profits and losses should not be restricted and resulting losses should be allowed to be deferred for a long period. |
| - | An efficient taxation scheme that does not burden relevant parties, should be introduced. A special securities account may be useful. |
| - | Deliberations should start as soon as possible and sufficient preparation and an interim period for migration would be essential. |